03-1141Council File # �{��
Resolution #
Green Sheet # �� `�.L
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA Z�
Presented By
Referred To
Committee: Date
RESOLUTION OF THE CITY COUNCIL OF THE
2 CITY OF SAINT PAUL, MINNESOTA
3 AUTHORIZING THE SPENDING OF STAR FUNDS TO PROVIDE FOR
4 THE HOUSING 5000 LAND ASSEMBLY PROGRAM
6 WHEREAS, on 7une 5, 2002, the City Council of the Ciry of Saint Paul, Minnesota (the "City")
7 adopted its Resolution No. 02-510 approving the City's Housing Production 2002-2005 — Housing 5000
8 (the "Program"), and recognizes that, in order to successfully implement the Proa am, additional land
9 assembly would be required; and
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11 WHEREAS, on June 25, 2003 the Housing and Redevelopment Authority ofthe City of Saint Paul,
12 Minnesota (the "HRA") adopted its Resolution No. 03-6/25-2, recognizing and undertaking to participate
13 in the Program; and
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WHEREAS, the HRA, in the adoption of its Resolution No. 03-6/25-2, approved the Housing 5000
land assembly plan designated sites; named a financing team; and authorized HRA staff to move forward
with the structuring of a revenue bond issue that would leverage STAR Funds at a 2.5 to 1 ratio, and allow
the use of the bond proceeds generated to acquire additional land and repay the HItA for interim funds
previously advanced for land acquisition; and
WHEREAS, the HRA has presented to the City a proposed financing for $ZS Million in Land
Assembly Bonds at the December 23r HRA Board Meeting that would accomplish the purposes previously
set forth in the HRA's Resolution No. 03-6/25-2; and
WHEREAS, the City wishes to spend $10,000,000 ofthe STAR funds that have accuxnulated during
2002 and 2003 to support the Program by furthering residential development in both downtown Saint Paul
and in Saint Paul's neighborhoods; and
WHEREAS, the City has determined that it is in the best interests of the City to spend these STAR
funds by transferring them to the HRA and placed in the HRA Land Assembly Bond Project Account for
use in the acquisition and improvement of land, as described in the proposal presented by the HR�, and to
take all action necessary to provide STAR funds to the HRA for its use in the implementation of that
proposal.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul as follows:
1. The City hereby reaffirms its continuing approval of the Program in general, and its support of
the HRA's participation in the Program through the land assembly plan, as outlined by the presentation
made to the City at this meeting.
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2. The City hereby authorizes and directs that $10,000,000 of STAR Funds currently on deposit with the
City in cash ar marketable securities, reflecting STAR Fund collecrions during 2002 and 2003, be promptly
transferred to the IIRA for its use, in its connection with the acquisition and improvement of land in support
of the Program, and that, upon such transfer to the HRA, such funds be deemed spent by the City for the
purpose of fiirthering residential development in downtown Saint Paul and in Saint PauPs neighborhoods.
The $10,000,000 of STAR funds has previously been budgeted for Housing 5000 use tt�rough City Council
Resolutions CF02-972 ($5,000,000) and CF03-875 ($5,000,000). STAR Account Code: P7-930-90306-
0547-77654.
3. That interest earnings for 2004 in excess of $100,000 will go back to the Neighborhood
Investment Program (NIP) subject to NIP guidelines.
Requested by Department of:
Adoption Certified
BY:
Approved by Ma r:
By: �
Council Secretary
Date
r
Plannin & Econom�c D 10 ment
By: O� �
Approved by Financial Services
BY: ` �
Form ApproVed by City Attorney
By
Adopted by Council: Date I�C�-� �1J03
� Green Sheet Green
Sheet Green Sheet Green Sheet Green Sheet Green��
i uepartmenUO�ce/counciL { Date lnitiated: (
i PE„ - Planning&EcononucDevelopment I 12-DEG03 I Green Sheet NO: 3009055
Corrtact Person & Pfione:
Jenny Wolfe
6-6555
Must Be on
23-DEG03
0 lannino & Ec nomic Develo T m Mever �M (
1 lanuine&EconomicDevelon DeoartmentDirector i
2 iNAttome � *.*_r_.,mr_.,. � �
3,
i3'�/ bYfavor'sbffce Mavor/Assistant
A ouncil i B�strom I
5b i[v Clerk C'tv Cle k
�
Assign
Number
For
Routing
Order
Total # of Signature Pages �(Clip All Locations for Signature)
Action Requested: -
5ignature on attached resolution authori�;n° the hansfer of STAR funds to the Housing and Redevelopment AuThority to provide for
the Aousing 5000 Land Assembly Pzogram.
ioacwns: Hpprove �H7 or rce7ec[ �rt):
Planning Commission
CB Gommittee
Civil Service Commission
Personal
Answer the Following Questions:
1. Has this person/firm ever worked under a contract for this departmenY?
Yes No
2. Has this persoNfirm ever been a city employeel
Yes No
3. Dces this person/firm possess a skill not normally possessed by any
current city employee?
Yes No
F�cplain all yes answers on separate sheet and attach to green sheet
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
The City Council approved the Housing 5000 Program in 2002 and the use of $20M in STAR funds to assist with the producrion of
5,000 housing units in the City through 2005. On June 25, 2003, the Housing and Redevelopment Authority approved a Land Assembly
Plan fo issue $25M in bonds to fiuthex the Housing 5000 Pxogxam, supported with $ l OM of STAR funds from the fust two yeaz�..
Advantages If Approved:
The Housing and Redevelopment Authority will issue $25M in bonds, secured by a letter o€ credit from U.S. Bank National
Associarion, to fmance or refinance costs incurred in the acquisition and impxovement of land pursuant to the Housing 5000 Pxogtam.
DisadvantaS�es If Approved:
None
Disadvantages If Not Approved:
The goal of tfie Housing 5000 Program will not be fnet.
otai Amount of 10000000
Transaction: �
Fundinq Source: � � r-� �
Fi nancial Information:
(Explain)
CostlRevenue Budgeted:
ActivitvNumber: _°?��1.�
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